Investment Real Estate topics throughout California and sometimes further! Mario Pinedo has been a Realtor since 1991 in Silicon Valley and has sold throughout California and the West. His primary investment vehicle is multi-family rental properties. Mario focuses on major markets from San Diego, Orange County, Los Angeles, San Jose, San Francisco and northern California. Since 2010 he has been located in Irvine, CA.

Sunday, June 15, 2008

What to do with a zero equity home in a divorce?

Sad reality these days when a separating couple must decide how to deal with their home when it has negative equity. In better years, one spouse may buy the other out with a refinance or cash payment for their share of the equity. Now, if the home was purchased or cash-out refinanced recently and the home went down in value, the spouses are in a very different situation. With a negative equity position, one spouse may have to offer the other money to get out of the situation. The other spouse may very well not want to keep the house too. But what if both don't want the burden of the home? The solutions are difficult - bring money to the closing to pay off the lenders, attempt a short sale (low likelihood of success) or let the home slip into foreclosure - with all the negative affects associated with that. Keeping the house may or may not be possible depending on the loan that exists. Will it readjust? Will the single income earner be able to keep up with the payments? Will the exiting spouse still have liability if the loan is not kept current? Probably. Can a refinance even be possible? These are all very complicated questions - more so influenced by how well the two parties communicate now and in the future. There is a price for freedom to be sure. Any magical solutions greatly appreciated!

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Bay Area Commercial & Residential Invesment Real Estate Team

Mario Pinedo, CCIM - Commercial, Residential & Investment Realtor since 1991. Mario has been advising clients in the purchase of their home, rental properties, investment and commercial properties. He brings deep knowledge of what to buy, where to buy, how to buy and when to buy. Please ask him for his advice on your next real estate transaction. Mario is a real estate Broker and provides residential & commercial sales, leasing and lending services.

Mike Priolo - Commercial Landlord and Tenant Representative for Retail, Industrial and Office space throughout the San Francisco Bay Area. Mike has extensive knowledge throughout the industry with previous employment as a commercial real estate researcher, supporting a residential developer and processing commercial loans.

Hana Yang - Commercial and Residential investment knowledge having participated directly in projects in San Jose and Los Angeles. Projects include new installations of laundry business and single tenant NNN school facility.